Uncertainty that had dragged on in recent weeks grew on Thursday after confirming the invasion and the first Russian attacks on Ukrainian territory. The world’s main stock markets responded with heavy losses that they later began to correct. And in this scenario, there were investors who reinforced their bet on safer haven assets and moderated their appetite for risk.as they closely assess the impact of the war.
This was reflected in the evolution of the price of gold, which rose sharply. Futures hit a high of $1,976 per ounceits highest value since September 2020 in the midst of the pandemic, and then moderated on Friday to a maximum of US$1,922 per ounce.
Aside from that specific event gold began a new upward path in the final stretch of last year, helped by higher demand in a context of high global inflation.
Today international forecasts are divided. While some speak of consolidation during 2022 as a result of different political and economic uncertainties, including the new armed conflict, others are somewhat more pessimistic and point to the tightening of monetary policy in the world as an element that can play against it.
The possibility of investing in gold from Uruguay it is at your fingertips, and it can be done easily just like with any other asset without having to shell out large amounts of money. The menu of options ranges from buying shares in exchange-traded funds without the need to physically have the precious metal, buying crypto assets or even buying physical gold, for example.
ETFs
One way is the Exchange Traded Funds (ETF), that is, funds that operate on the stock market and replicate the results of a given index. The operation with this type of funds is done the same as if you were to buy shares or bonds, opening an account with a stockbroker or a broker.
One of the most popular is the iShares Gold Trust ETF listed on the New York Stock Exchange, which seeks to reflect the daily performance of the price of gold bullion. This Friday the price of this ETF was US$37. But there are also dozens of other alternatives that can be accessed from Uruguay.
Lhe ETFs also have among their advantages the possibility of diversifying the investment with a single product at a low cost. For example, if you want to take the opportunity to invest in mining companies, but you don’t know which stock to choose, you can buy a stake in an ETF in the sector and have access to a representative basket of shares.
Like any other investment, it is always advisable to do so with an advisor who will know how to guide you regarding which product is best for you, taking into account the investor’s profile, their horizon, the liquidity of the instrument, the fees charged and their returns, among other aspects. From the market.
Coins from US$ 30
Physical purchase of gold in small amounts may also be preferred. This can be done in financial services entities authorized by the Central Bank (BCU), which carry out the purchase and sale of coins and ingots.
In dialogue with The Observer, Juan Picerno, from the La Fontaine firm, pointed out that after the latest price movements that occurred this week, people began to ask about the issue again.
Regarding supply, Picerno said that there is “little” availability of both gold and silver, given the limited market. Today you can buy from Mexican, Chilean, and Uruguayan coins, among other origins, to ingots ranging from 1 to 100 grams.
To define the sale price, the instant price of the international market is taken as a reference (plus a small spread charged by the intermediary) and it is sold for pure gold. For example, a one pound coin weighs between 7.9 to 8 grams but its pure gold weight is 7.32 grams.
One of the questions that is received most often is how much is the minimum that is needed to start investing. “People are often scared by the price of gold, but they can start investing with a Mexican peso coin that weighs half a gram of fine gold. So from $30 or $1,200 you can buy gold. And silver the same, it is quite accessible, ”he said.
Backed cryptocurrencies
There is also the chance to acquire gold-backed cryptocurrencies and that are operated on specialized platforms. An example is Pax Goldwhere each token is backed by a fine troy ounce of 400-ounce gold bullion, stored in vaults.
So if you own that crypto asset, you own the underlying physical gold, which is in the custody of Paxos Trust Company. Its price was $1,900 on Friday, according to Binance. Another example is Tether Gold. In this case, each acquired token represents digital ownership of one troy ounce of gold, which is equivalent to 31.10 grams and is backed by physical gold stored and guarded in Switzerland.
Contracts for difference
A more risky path and for experienced investors may be the financial derivatives of gold futures that are carried out through electronic platforms. This type of contracts for difference allows the price to be agreed upon at a certain term and it is possible to bet both on the rise and the fall of the underlying asset without owning it.
